Education Loan in India

India is one of the world’s most exciting and advancing education hub. The world knows that Indians are good in software programming, good in accounts, good in analysis, good in creativity, good in R&D, etc. Indians are working all over the world. If we go to Silicon Valley, a lot of Indians are working in Microsoft, Intel, and Google. Even a lot of Indian scientists are working in NASA. New age Universities and educational institutes offer a lot of advanced courses and programs for students. For higher studies, some of the students go abroad. Previously it was very difficult for poor and middle-class family but now there are a lot of banks who are offering Education Loan for higher studies.

In a competitive environment, quality education is a must for a successful life. Our new generations are very intelligent & pro-active and they decide their career path at the age of 10-12. But the education fees are increasing every year. Sometimes it looks very difficult for a family to provide quality education for their kid.

Education in India, especially in premier educational institutions, is quite expensive. And in many cases, even if a student is qualified to get admission purely on merit, it becomes difficult to study in such institutions due to financial constraint. According to studies, the cost of education is increasing at an average of 15% per annum. For undergraduate courses, the fees could be ₹ 5-10 Lakh, while for a five-year medical course at a private college, this could go up to ₹ 50 Lakh. Business schools in India charge more than ₹ 10 Lakh. The cost of higher education is much higher abroad.

But now students who want to study more can opt for education loans for their further studies. There are several banks; both public and private sector from which a student can avail an education loan.

According to the Indian Banks Association norms, banks offer loans of up to ₹ 10 Lakh for courses in Indian colleges and up to ₹ 20 Lakh for studies abroad and for post-graduate courses such as those in management, banks offer loans of up to ₹ 10-20 Lakh.

Applicable for all students: – Any student who wants to study can apply for an education loan even though he belongs to Below Poverty Level (BPL) family. He/She can take education loans under the government-sponsored subsidy schemes such as ‘Central Scheme to provide Interest subsidy’ (CSIS).

Applicable for all courses: – Education loan can be used to pursue any types of courses; it could be graduation, post-graduation, diploma courses, degree courses, vocational courses, etc. whether in India or foreign universities.

Easily access available: – As per RBI guideline, Education Loan is the priority product of all banks whether it is nationalized or private. Education loans are widely and easily available in all banks.

Customized loan amounts: – Education loan amount depends on the course applied for and it depends on the location (within the country or abroad) also.

The repayment of education loan will not start just after the disbursal which is common in all other loans. The repayment process will start after 6 months to 1 year of completion of the course, though it can be extended to 5 to 7 years. The applicant can avail of benefits under Section 80-E of the Income-Tax Act.

Here is some information which can help you.

Best Banks for Education Loan in India (up to 7.50 Lakhs)

HDFC Bank

Axis Bank

Vijaya Bank

Union Bank of India

Best Banks for Education Loan in India for Foreign Studies

State Bank of India

Punjab National Bank

ICICI Bank

Best Bank for Education loan in India for Vocational and Skill development courses

Corporation Bank

Canara Bank

Best Bank for Education Loan in India for School studies

Bank of Baroda

Allahabad Bank

Taking an education loan helps you to build a good career and a good future. It helps to fulfill your dreams. If you repay the loan timely without fail, it will build your credit score also and it will help you to get a home loan, vehicle loan, business loan, personal loan, etc. in the future.